Kinder Morgan will proceed with Trans Mountain pipeline expansion
Kinder Morgan says it will proceed with the $7.4-billion Trans Mountain pipeline expansion as long as it secures satisfactory financing for the project through its initial public offering.
The Texas-based company, in conjunction with its indirect subsidiary Kinder Morgan Canada, announced Thursday its final investment decision on the project, which is conditional on the successful completion of the IPO.
The company has offered 102.9 million shares at a price of $17 per share in an effort to raise $1.75 billion. The public offering is set to close May 31.
The IPO would be one of the biggest ever on the Toronto Stock Exchange and Kinder Morgan spokesman Dave Conover says the company is confident it will be a success.
Conover said the timing of the public offering wasn’t intended to coincide with British Columbia’s provincial election which has created political uncertainty.
The process is proceeding because the project’s financing contingency period, as specified in shipper agreements, concludes at the end of May.
B.C.’S election has left the anti-pipeline Greens holding the balance of power in a minority situation in the legislature, raising concerns they will use their influence to persuade whichever party forms the government to take measures to block the project.